HC Deb 16 January 1979 vol 960 cc726-7W

Mr. Crawford asked the Chancellor of the Exchequer what is his estimate of the cost to the Exchequer of a 1 p reduction in the standard rate of income tax in the fiscal year 1979–80 (a) in current prices and (b) in 1979–80 prices, assuming the current rate of inflation continues during that fiscal year.

Mr. Robert Sheldon: It is not the practice, prior to the publication of the Financial Statement which accompanies the Budget, to give costs for the next fiscal year which would depend on the level of incomes and allowances in that year. At 1978–79 income levels and allowances, the latest estimated cost of a penny reduction in the basic rate is about £400 million.